What you must know about JG Chemicals IPO?
by 5paisa Research Team
29 Feb 2024
Listing Details
- Listing Exchange BSE, NSE
- Listing Date 13-Mar-24
- IPO Price Range ₹210
- Listing Price ₹211
- Listing Change -4.5 %
- Last Traded Price ₹237.05
- Current Change 7.3 %
J.G.Chemicals IPO Details
- Open Date 05-Mar-24
- Close Date 07-Mar-24
- Lot Size 67
- IPO Size ₹ 251.19 Cr
- IPO Price Range ₹ 210 to ₹ 221
- Min Investment ₹ 14,070
- Listing Exchange BSE, NSE
- Basis of Allotment 11-Mar-24
- Refunds 12-Mar-24
- Credit to Demat Account 12-Mar-24
- Listing Date 13-Mar-24
J.G.Chemicals IPO Subscription Status
| Date | QIB | NII | Retail | TOTAL |
|---|---|---|---|---|
| 05-Mar-24 | 0.02 | 3.02 | 3.82 | 2.56 |
| 06-Mar-24 | 0.46 | 9.99 | 8.72 | 6.63 |
| 07-Mar-24 | 32.33 | 47.92 | 18.03 | 28.52 |
J.G.Chemicals IPO Synopsis
JG Chemicals Limited IPO is set to open from 5th March to 7th March 2024. The company is the largest manufacturer of zinc oxide in India. The IPO includes a fresh issue of 7,466,063 shares worth ₹165 cr. and an Offer-for-Sale (OFS) of 3,900,000 worth ₹86.19 cr. The total IPO size is ₹251.19 cr. The share allotment date is 11th March 2024, and the IPO will be listed on 13th March 2024 on the stock exchanges. The price band is set at ₹210 to ₹221 and the lot size is 67 shares.
Centrum Capital Limited, Emkay Global Financial Services Limited and Keynote Financial Services Limited are the book-running lead managers for this IPO, while KFin Technologies Limited is the registrar.
Objectives of JG Chemicals IPO:
● To invest in the subsidiary BDJ Oxides for i) repay or prepay full or partial borrowings obtained and ii) working expenditure requirements for setting up the R&D Centre.
● To fund the working capital requirements for the company and its subsidiary.
● General Corporate Purposes.
About J.G.Chemicals
Established in 2001, JG Chemicals Limited is the largest manufacturer of zinc oxide in India in terms of production and revenue. The company produces zinc oxide via the French process. As of March 2022, JG Chemicals had a total market share of 30% and the company sells 80+ grades of zinc oxide. Globally also the company is among the top 10 manufacturers.
JG Chemicals supplies to 9 out of 10 and all 11 tyre manufacturers globally and in India respectively along with supplying zinc oxide to India’s top paint, footwear and cosmetics companies. Also, BDJ Oxides, which is a subsidiary of JG Chemicals, is India's only company that has an IATF certification.
JG Chemicals, as of December 2023 had a total installed capacity of 77,040 MTPA. Its two manufacturing units are based in Jangalpur and Belur in West Bengal and one is based in Naidupeta, Andhra Pradesh).
Peer Comparison
● Rajratan Global Wire Limited
● Nocil Limited
● Yasho Industries Limited
For More Information:
Webstory on JG Chemicals IPO
J.G.Chemicals Financial Status
Profit and Loss
Balance Sheet
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Revenue from operations | 784.57 | 612.83 | 435.29 |
| EBITDA | 85.11 | 66.37 | 48.60 |
| PAT | 56.79 | 43.12 | 28.79 |
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Total Assets | 297.79 | 264.14 | 209.93 |
| Share Capital | 31.72 | 1.22 | 1.22 |
| Total Borrowings | 84.26 | 107.50 | 90.93 |
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Net cash generated from / (used in) operating activities | 31.16 | 6.75 | -7.34 |
| Net cash from / (used in) investing activities | -4.89 | -5.41 | -5.60 |
| Net cash flow from / (used in) financing activities | -28.57 | -0.19 | 16.95 |
| Net increase (decrease) in cash and cash equivalents | -2.30 | 1.14 | 4.00 |
J.G.Chemicals IPO Key Points
-
Strengths
1. The company has a leading market position with a diversified customer base.
2. There are high entry barriers in the end industries that the company serves, which means it has leverage as the largest supplier.
3. The company has strong and consistent financial performance.
4. The company has long-established relationships with key customers and suppliers.
5. It also focuses on long-term sustainability with environmental initiatives and safety standards.
6. Skilled and experienced management team. -
Risks
1. A majority of its revenues from operations are derived from its material subsidiary.
2. The company operates in a competitive industry.
3. The company is dependent on the rubber and tyre industry.
4. It is reliant on overseas suppliers for raw materials.
5. It has experienced negative cash flows in the past.
6. The company is exposed to foreign exchange fluctuation and commodity pricing risks.
J.G.Chemicals
How to apply for IPO?
-
Login to your 5paisa account and select the issue in the
current IPO section -
Enter the number of lots and price at which you wish to
apply for -
Enter your UPI ID and click on submit. With this, your
bid will be placed with the exchange -
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your UPI app -
Approve the mandate request on your UPI and funds
will be blocked
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J.G.Chemicals IPO FAQs
When does the JG Chemicals IPO open and close?
JG Chemicals IPO opens from 5th March to 7th March 2024.
What is the size of the JG Chemicals IPO?
The size of JG Chemicals IPO is ₹251.19 cr.
How to apply for the JG Chemicals IPO?
To apply for JG Chemicals IPO, follow the steps given below:
● Login to your 5paisa account and select the issue in the current IPO section
● Enter the number of lots and the price at which you wish to apply for the JG Chemicals IPO.
● Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange.
You will receive a mandate notification to block funds in your UPI app.
What is the price band of JG Chemicals IPO?
The price band of JG Chemicals IPO is set at ₹210 to ₹221 per share.
What is the minimum lot size and investment required for the JG Chemicals IPO?
The minimum lot size of JG Chemicals IPO is 67 shares and the minimum investment required to apply for the IPO is ₹14,070.
What is the allotment date of the JG Chemicals IPO?
The share allotment date of JG Chemicals IPO is 11th March 2024.
What is the JG Chemicals IPO listing date?
The JG Chemicals IPO will be listed on 13th March 2024.
Who are the book runners for the JG Chemicals IPO?
Centrum Capital, Emkay Global Financial Services and Keynote Financial Services are the book-running lead managers for JG Chemicals IPO.
What is the objective of the JG Chemicals IPO?
JG Chemicals will use proceeds for:
● To invest in the subsidiary BDJ Oxides for i) repay or prepay full or partial borrowings obtained ii) working expenditure requirements for setting up the R&D Centre.
● To fund the working capital requirements for the company and its subsidiary.
● General Corporate Purposes.
Contact Details of J.G.Chemicals IPO
Contact Information
JG Chemicals Limited
34A, Metcalfe Street,
Kolkata – 700 013
Phone: +91 33 4014 0100
Email: corporate@jgchem.com
Website: https://jgchem.com/
J.G.Chemicals IPO Register
Kfin Technologies Limited
Phone: 04067162222, 04079611000
Email: jgchemicals.ipo@kfintech.com
Website: https://kosmic.kfintech.com/ipostatus/
J.G.Chemicals IPO Lead Manager
Centrum Capital Limited
Emkay Global Financial Services Ltd
Keynote Financial Services Ltd
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